Reviewing Franklin Resources (NYSE:BEN) & Its Competitors

Franklin Resources (NYSE: BEN) is one of 56 public companies in the “Investment Management & Fund Operators” industry, but how does it compare to its rivals? We will compare Franklin Resources to related businesses based on the strength of its dividends, analyst recommendations, profitability, risk, earnings, valuation and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Franklin Resources and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Franklin Resources 3 6 1 0 1.80
Franklin Resources Competitors 285 1728 1825 57 2.42

Franklin Resources presently has a consensus price target of $43.44, indicating a potential upside of 5.63%. As a group, “Investment Management & Fund Operators” companies have a potential upside of 9.47%. Given Franklin Resources’ rivals stronger consensus rating and higher probable upside, analysts clearly believe Franklin Resources has less favorable growth aspects than its rivals.

Dividends

Franklin Resources pays an annual dividend of $0.80 per share and has a dividend yield of 1.9%. Franklin Resources pays out 26.7% of its earnings in the form of a dividend. As a group, “Investment Management & Fund Operators” companies pay a dividend yield of 2.5% and pay out 45.6% of their earnings in the form of a dividend. Franklin Resources has raised its dividend for 35 consecutive years.

Earnings & Valuation

This table compares Franklin Resources and its rivals revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Franklin Resources $6.39 billion $1.70 billion 13.71
Franklin Resources Competitors $6.06 billion $896.42 million 589.09

Franklin Resources has higher revenue and earnings than its rivals. Franklin Resources is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

Franklin Resources has a beta of 1.75, suggesting that its stock price is 75% more volatile than the S&P 500. Comparatively, Franklin Resources’ rivals have a beta of 1.42, suggesting that their average stock price is 42% more volatile than the S&P 500.

Profitability

This table compares Franklin Resources and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Franklin Resources 26.54% 13.60% 10.00%
Franklin Resources Competitors -218.22% -1.27% 3.24%

Insider and Institutional Ownership

45.4% of Franklin Resources shares are owned by institutional investors. Comparatively, 62.3% of shares of all “Investment Management & Fund Operators” companies are owned by institutional investors. 21.6% of Franklin Resources shares are owned by insiders. Comparatively, 10.5% of shares of all “Investment Management & Fund Operators” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Franklin Resources beats its rivals on 8 of the 15 factors compared.

Franklin Resources Company Profile

Franklin Resources, Inc. is a holding company. The Company, along with its subsidiaries, operates as Franklin Templeton Investments. It is a global investment management company that provides investment management and related services to retail, institutional and high net-worth clients in jurisdictions around the world. The Company offers its investment products and services under the Franklin, Templeton, Franklin Mutual Series, Franklin Bissett, Fiduciary Trust, Darby, Balanced Equity Management, K2 and LibertyShares brand names. Its products include investment funds and institutional, high net-worth and separately managed accounts (collectively, sponsored investment products (SIPs)). It offers various types of SIPs, such as the United States funds, cross-border funds, local/regional funds, and other managed accounts, alternative investment products and trusts. Its investment funds include the United States-registered funds, non-United States-registered funds and unregistered funds.

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